A new report by Birmingham City Council said 233 fines were being refunded.

That represents less than £14,000 out of £1.7m collected in fines.

Councillor Tahir Ali, responsible for transport, told a city council scrutiny meeting on Friday that those drivers had previously appealed fines, citing unclear signage or that they were unaware of driving in bus lanes at one of the three sites.

Mr Ali said the council would not be allowing retrospective appeals by drivers who had already paid fines as it would set a precedent and allow some to "jump on the band wagon".

Councillor Tim Huxtable, a member of the economy and transport overview and scrutiny committee, however, suggested the authority had a "moral obligation" to refund all 65,000 fines at the three sites.

In February, independent adjudicator Stephen Knapp said he found signage was inadequate or confusing at The Priory Queensway from Colmore Circus towards Old Square, St Martin's Queensway and Moor Street Queensway.

Responding to appeals by two drivers, he said: "I am satisfied that the inadequacy of the signing means the penalties issued... should not be enforced."